EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
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Textbook Question
Chapter 23, Problem 5P
Consider the information provided in Problem 23-4 Suppose the market
23-4. The table nearby represents the hourly output and cost structure for a local pizza shop. The market is
| Total Hourty Output and Sales Pizzas | Total Hourty Variable Cost ($) |
| 0 | 5 |
| 1 | 9 |
| 2 | 11 |
| 3 | 12 |
| 4 | 14 |
| 5 | 18 |
| 6 | 24 |
| 7 | 32 |
| 8 | 42 |
| 9 | 54 |
| 10 | 68 |
- Calculate the total revenue and total economic profit for this pizza shop at each rate of output
- Assuming that the pizza shop always produces and sells at least one pizza per hour, does this appear to be a situation of short-run or long-run equilibrium?
- Calculate the pizza shop's marginal cost and marginal revenue at each rate of output Based on marginal analysis, what is the profit- maximizing rate of output for the pizza shop?
- Draw a diagram depicting the short-run marginal revenue and marginal cost
curves for this pizza shop, and illustrate the determination of its profit-maximizing output rate.
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Suppose Person A is looking for a health insurance plan on Oregon's health insurance marketplace and you find one with the following details:
Monthly Premium: $331
Deductible: $5,000
Primary care visit to treat injury or illness: $35 copay
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conclude that if given the option between points B and Y the individual would prefer:
Utility
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point B- the actuarially fair and full contract
point Y-the actuarially unfair but full contract
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